WASHINGTON, September 20, 2011 – API commended EPA's approval of an air permit for the drilling vessel Noble Discoverer, which Shell plans to use in exploration drilling next year in the Chukchi Sea off northwestern Alaska.
"EPA's decision is a welcome and critical step toward allowing Shell to move ahead to increase America's domestic energy supply, which will also create jobs and help increase government revenues," said Richard Ranger, API senior policy advisor in Upstream and Industry Operations. "Alaskan Outer Continental Shelf development is a genuine long-term economic stimulus plan."
EPA's decision indicates that the project does not present human health issues or create adverse effects on air quality in the region, according to API.
Development of oil and natural gas resources in the Alaskan Outer Continental Shelf would create and sustain an annual average of 54,700 new jobs through the year 2057, according to a recent study by Northern Economics and the University of Alaska. In addition, a total of $193 billion in government revenue would be generated through the year 2057, with $167 billion to the federal government, $15 billion to Alaska, $4 billion to local governments in the state, and $6.5 billion to other state governments.
An average of nearly 700,000 barrels of oil per day would be produced for 40 years, according to an independent assessment of industry-wide development of Alaska's Beaufort and Chukchi seas. This is equivalent to our 2010 oil imports from Iraq (506,000 barrels per day) and Russia (137,000 barrels per day) combined.
Development of the oil and gas resources in the Chukchi Sea would also extend the life of the strategically important Trans-Alaska Pipeline System for decades, according to API.
API represents more than 480 oil and natural gas companies, leaders of a technology-driven industry that supplies most of America's energy, supports 9.2 million U.S. jobs and 7.7 percent of the U.S. economy, delivers $86 million a day in revenue to our government, and, since 2000, has invested over $2 trillion in U.S. capital projects to advance all forms of energy, including alternatives.